Replacement Problem with Grey Parameters

Capital cost, resale value and running cost including maintenance costs, repairing costs, and operation costs of equipment are considered as crisp numbers in ordinary replacement problem. Nevertheless, in a special situation such as operating military equipments during wartime, the working efficiency of the machine and its related costs are no longer crisp but uncertain. This uncertainty can be represented by interval grey numbers. The aim of the paper is to study the replacement problem , where the grey costs are to be considered as interval grey numbers. In the model construction of the problem, we simply use the arithmetic properties of interval grey numbers. We determine a replacement time by considering an average annual cost with grey numbers. Possibility degree of grey numbers is used to make the order preference of average annual costs. We provide a numerical example to demonstrate the potentiality of the proposed method. General Terms Replacement Problem